PVN signs ISDA contracts with foreign banks

The Vietnam National Oil and Gas Group (PVN) signed in Hanoi on Sept. 9
three standardised ISDA contracts with foreign banks as the basis for
derivative transactions in the future.

The banks include PVN and BNP Paribas, Sumitomo Mitsui Banking
Corporation (SMBC) and Standard Chartered Bank. This was the first time
that PVN had inked such contracts including the ISDA Master Agreement
2002 of the International Swaps and Derivatives Association.

The
signing is expected to be a prerequisite for the signing of PVN’s future
practical derivative transactions to mitigate risks for the group’s
financial activities.

Speaking at the signing ceremony, PVN
Deputy General Director Nguyen Tien Dung said that in implementing its
development investment strategy in the next period, PVN has been
mobilising capital from various sources for oil and gas energy projects.
So far, the group’s foreign loans have hit 3 billion USD.

He also said that PVN and its partners would hold negotiations to sign practical derivative contracts.

SMBC
took part in provision of loans of 270 million USD to the Nhon Trach 1
power plant project, 300 million USD to the Dung Quat oil refinery and
96 million USD to Vung Ang power plant.

Standard Chartered Bank was a joint lender of 250 million USD to the Dung Quat oil refinery.

PVN
plans to negotiate with other foreign banks like Citibank and Lions to
sign more ISDA to create necessary competitiveness in selecting
providers of derivative services./.

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Seminar seeks to increase handicraft exports to Japan

Vietnamese businesses need to pay more attention to designing and
creating unique handicraft products in order to boost exports to the
Japanese market and increase their competitiveness over rivals from
China , India and Myanmar , say Japanese experts.

At a seminar on increasing handicraft exports to the Japanese market,
held in Hanoi on September 9, Setsuko Okura, Managing Director of the
Japanese company Osmic Ltd, said that after becoming more competitive
and attractive, many Vietnamese handicrafts have become popular in the
Japanese market. The use of Vietnam ’s embroidered bags has also
become trendy with young Japanese people.

She
stated that in recent years, the design of Vietnamese ceramic and
lacquer products has been vastly improved. However, to penetrate deeper
into the Japanese market, Vietnamese handicrafts must ensure two
factors: design and price.

According to Takata, a
leading Japanese designer, besides these two factors, Vietnam ’s
handicraft products must be unique and decorative.

He suggested that the Vietnamese government should introduce strategies
to train designers and encourage Vietnamese students to study design in
Japan to ascertain Japanese consumers’ tastes.

At the seminar, several Japanese experts chose 10 Vietnamese
handicraft producers to attend an exhibition themed “Lifestyle Vietnam ”
in Tokyo from November 30 to December 9 this year.

According to the Ministry of Industry and Trade , Japan is one of
Vietnam ’s major handicraft importers and is expected to import 150
million USD worth of Vietnamese handicrafts this year, accounting for 4
percent of the country’s total handicraft import value./.

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Post-crisis opportunities, challenges highlighted

Numerous managers, economists and businesspeople gathered at a seminar
in Ho Chi Minh City on September 9 to discuss the opportunities and
challenges as well as Vietnam ’s policies and measures after the
economic crisis.

Co-hosted by the Vietnam
Investment Review (VIR) and the Association of Foreign-invested
Enterprises, the seminar also served as a forum for the delegates to
analyse the factors affecting the flow of investment and trade.

VIR’s Editor-in-Chief Nguyen Anh Tuan said that the global financial
crisis had many adverse impacts on Vietnam in terms of exports,
foreign direct investment (FDI), the stock market, international tourism
and other fields.

However, Vietnam has managed
to stave off the worst of the economic recession and stabilise its
macro-economy thanks to concerted efforts by the government and the
business community, he said.

Professor Nguyen Mai
noted that FDI is considered the brightest spot in the country’s
economic picture over the past two years, but Vietnam needs to
improve the quality of this capital source.

While
discussing the knock on effects on the stock market, the Vice Chairman
of the State Securities Commission Nguyen Doan Hung emphasised the need
to stabilise the market before implementing long-term targets, including
enhancing the quality of auditing, information and corporate
administration, tightening the supervision and protection of investments
and dealing properly with securities companies suffering losses.

Dr. Le Xuan Nghia, the Vice Chairman of the National Financial
Supervisory Committee, said that Vietnam is likely to face more
monetary risks in the medium term, citing its foreign exchange rates.

The slow recovery of the global economy could hamper
the flow of capital into Vietnam , worsen the depreciation of the
Vietnamese dong and weaken the country’s international balance of
payments, said Nghia./.

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More employed through job placement centres

About 224,000 people have been employed through the system of job
placement centres and transaction floors each year during the 2006-2010
period, a rise of five percent compared with the figure before 2005,
reported the Ministry of Labour, War Invalids and Social Affairs
(MoLISA).

At a seminar to assess the
effectiveness of job transaction floors on Sept. 9, MoLISA Deputy
Minister Nguyen Thanh Hoa said that the information of labour supply and
demand on the market are updated through job transaction floors,
helping increase the efficiency of the link between labour supply and
demand.

However, he pointed out difficulties in
investment and infrastructure and the lack of officials that have slowed
the operation of the centres and floors.

The
number of people finding their jobs through the centres and floors now
only represents 14 percent of the total of 1.6 million new jobs each
year, he added.

The participants suggested the
centres and floors finalise legal frameworks for job services, increase
investment in infrastructure and equipment and devise training
programmes for officials.

The ministry’s
Employment Department said that it will develop the job placement
centres under the World Association of Public Employment Services
(WAPES) standard to raise the number of people employed through the
network to 40 percent by 2020./.

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Analytica expo 2011 to be held in HCM City

Domestic and foreign companies will display their products on laboratory
technology, analysis, biotechnology and diagnostics at the Analytica
Vietnam 2011 to be held in Ho Chi Minh City from April 7-9.

The exhibition, the second of its kind in Vietnam , will be
coorganised by Munich Exhibition Company of Germany and the National
Agency for Science and Technology Information (NASATI), according to
information released at a press briefing held in HCM City on
September 9 by the Ministry of Science and Technology.

Advanced equipment and technologies used in areas such as chemical,
electronics, pharmaceuticals, health care and environment will be
showcased at 250 booths at the event.

Within the
framework of the event, there will be a two-day seminar, during which
the world’s leading scientists will present latest themes in related
industries and exchange experiences as well as achievements in science.
The seminar is expected to see the participation of about 300 scientists
from countries worldwide, including Italy , Germany , China , Japan
and Singapore .

Especially, research institutes
and laboratories will have chance to update information about the
international standard ISO 17025.

According to Phung
Minh Lai, deputy head of NASATI, the exhibition will offer domestic and
foreign enterprises an opportunity to seek out partners and expand
their business while contributing to the fulfilment of several
national targets, including 10 percent to 15 percent growth rate in the
chemical industry each year, and building self-production capacity in
areas like petrochemistry and chemical products in agriculture and
pharmaceuticals.

Nicole Klammer, Director of
Analytica Asia, said over 15 German companies and eight French
enterprises have confirmed their participation at the exhibition while a
number of other leading companies across the world have registered.

The first Analytica Vietnam held in 2009 attracted 74 companies from 11 nations worldwide./.

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IMF warns Vietnam against rapid rate cuts

The International Monetary Fund warned Vietnam on Wednesday that it risks hard-won market stability by trying to cut lending rates too fast, and said it should maintain the level of the dong currency to safeguard financial calm.

"The repeated announcements by the government about the need to lower the commercial lending rates may be counter-productive," the IMF said in a regular review of Vietnam's economic health.

"A lack of coordination between monetary and fiscal policies, or the appearance thereof, would amplify market skepticism," it said in a statement.

"The government, therefore, needs to convince market participants that its priority rests with macroeconomic stability. For this purpose, staff believes that maintaining the current stable exchange rate ... should be the immediate goal for the government," the IMF said.

State Bank of Vietnam governor Nguyen Van Giau said last week that lending rates were expected to drop. But Giau said they were not falling quickly at present because banks were cutting deposit rates slowly.

The IMF said Vietnam's exchange rate regime policy should be reformed over the medium term.

"A move from the current system that is based on a basket of currencies including those of regional trading partners may be appropriate," the report said.

The IMF review also said there was room for further reduction in Vietnam's budget deficit. Total investment spending was expected to fall this year by three percentage points of GDP from the 2009 level to about 11 percent of GDP, the report said.

The IMF projected GDP growth of 6.5 percent this year and 6.8 percent in 2011.

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New challenge for exported bicycles to EU

The revival of Vietnamese bicycle exports is still facing problems
despite the European Union removing anti-dumping duties, according to
the Ministry of Industry and Trade’s Competition Authority.

The
European Commission decided to scrap anti-dumping tariffs on Vietnamese
bicycles last July, while many other countries continue to be subject to
the duties. This resulted in the fact that a number of bicycles from
other countries are shipped to Vietnam and then exported to the EU
under the trademark “Made-in-Vietnam” in order to avoid the market’s
anti-dumping duties, Vu Ba Phu, the Deputy Head of the Ministry’s
Competition Authority, told a Vietnam News Agency reporter.

If it
fails to prevent these illegal actions, the export of bicycles made in
Vietnam to the EU would see an unusual “hot” growth, resulting in EU
manufacturers requiring the European Commission to take sanctions, he
warned.

“At that point, Vietnam ’s bicycles are at risk of being hit by anti-dumping duties again,” he stressed.

He
was also concerned that if the EU resumes their sanctions on Vietnamese
bikes, it will negatively affect the Vietnamese bicycle industry and
damage Vietnam ’s image in international trade circles.

The
EU’s decision to end its sanctions on Vietnamese bikes reflects the real
developments in the Vietnamese bicycle industry and will benefit a
large number of European consumers, said Phu.

“ Vietnam will
resolutely fight Vietnam being used as middle-ground for exporting
bicycles to the EU” in order to protect businesses and ensure the
country’s reputation, he stated.

According to the official, the
Ministry of Industry and Trade has asked all concerned ministries,
department and localities to watch out for such trade fraud as well as
closely monitor foreign invested bicycle projects, to prevent any
attempt to take advantage of the EU removing anti-dumping duties on
Vietnamese bicycles.

“The ministry is willing to cooperate with
the EC to conduct investigations and punish cases relating to the
illegal shipping of bicycles,” said Phu.

The Vietnam
Automobile, Motorcycle and Bicycle Association needs to closely
supervise the output of domestic bicycle producers and promptly discover
cases of fraud./.

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